KARACHI: Stocks rebounded on Thursday after closing the previous two sessions in the red. The KSE-100 index rose by 192.61 points (0.56 per cent) to settle at 34,674.61.
“Interest was seen in index heavy-weight stocks including OGDCL and MCB which contributed 80 points to total market gains,” Mohammad Rizwan, VP at Topline Securities calculated.
Investors took fresh positions in independent power producers on expectations of higher dividend disbursement.
Renewed interest was seen in banking sector but confined to big banks. MCB, HBL and UBL was up by 2.4pc, 1.2pc and 1.1pc, respectively.
Foreign investors decided to take profit with net sale of $3.36 million worth stocks.
As ECC increased import duty on sugar to 40pc from 20pc, local manufacturers remained in the sugar sector with stocks registering healthy gains. Oil and gas sector remained largely under pressure.
Turnover decreased to 450m shares of Rs13.4 billion value, from 540m shares of Rs15.8bn value the previous day.
In a notice to the KSE, Reliance Weaving Mills announced that its board had approved an investment of Rs100m in Fatima Transmission Company.
Positive earnings outlook in fertiliser sector and institutional support in selected banking stocks after Moody’s upgrade on deposit ratings of five Pakistani banks helped lift investor sentiments.Ahsan Mehanti, analyst at Arif Habib Corp, stated that the stocks closed bullish led by second- and third-tier stocks in cement and power sectors on strong valuations.
Analysts stated that the cement sector led in terms of volume with trading in 85m shares, followed by power 78m shares and technology and communication 40m shares.